Thu, Jan 17, 2019

Canadian M&A Insights - Winter 2019

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In 2018, Canadian M&A activity reached seven-year highs by deal count and three-year highs by implied enterprise value (EV). The Canadian M&A market has benefited from a relatively stable political environment as well as low financing costs and continued North American growth. In 2018, 1,874 Canadian companies changed hands, with disclosed EVs totaling $119 billion, a 20% and 35% increase over 2017 in terms of deal count and disclosed EV, respectively. Of the transactions completed, 72% were domestic acquisitions, which is in line with historical averages. 

The Canadian M&A market experienced an uptick in announced deals (1,874 in 2018 versus 1,558 in 2017); however, the median deal value fell ($8 million in 2018 versus $10 million in 2017). The significant increase in the number of deals under $50 million likely led to this decrease in median deal value. Although megadeals represent only 4% of all transactions, they represented 77% of the total deal value.

The Canadian M&A market will likely remain strong, given the abundant capital available from private equity and strategic buyers, who are eager for growth now that economic expansion is starting to slow (2019 and 2020 GDP growth is forecast at 1.7% and 1.8%, respectively). Buyers will likely continue to outnumber sellers, potentially driving up valuations.

Sources: S&P Global Market Intelligence as of January 4, 2019; Duff & Phelps analysis. All publicly disclosed transaction information available in S&P Global Market Intelligence

Canadian M&A Insights – Winter 2019

Corporate Finance and Restructuring

M&A advisory, restructuring and insolvency, debt advisory, strategic alternatives, transaction diligence and independent financial opinions.

Mergers and Acquisitions (M&A) Advisory

Kroll’s investment banking practice has extensive experience in M&A deal strategy and structuring, capital raising, transaction advisory services and financial sponsor coverage.

Transaction Advisory Services

Kroll’s Transaction Advisory Services platform offers corporate and financial investors with deep accounting and technical expertise, commercial knowledge, industry insight and seamless analytical services throughout the deal continuum.

Fairness and Solvency Opinions

Duff & Phelps Opinions is a global leader in Fairness Opinions and Special Committee Advisory, ranking #1 for total number of fairness opinions in the U.S., EMEA (Europe, the Middle East and Africa), Australia and Globally in 2023 according to LSEG (FKA Refinitiv).

ESOP and ERISA Advisory

Kroll's Corporate Finance ESOP/ERISA practice is a leading corporate finance and valuation advisor to companies and ERISA fiduciaries.

Financial Sponsors Group

Dedicated coverage and access to M&A deal-flow for financial sponsors.

Distressed M&A and Special Situations

Kroll professionals have advised hundreds of companies, investors and other stakeholders at all stages of distressed transactions and special situations.

Private Capital Markets – Debt Advisory

Kroll has extensive experience raising capital for middle-market companies to support a wide range of transactions.